ENERGYLINES - Steve Smith retires Chief Executive Officer Smith retires after 45 years of service at Hoosier Energy. Q&A on Pages 3-4
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JANUARY 2019 | Vol. 42, No. 1
ENERGYLINES
YEAR IN REVIEW
Hoosier Energy completes
a year of transitions
Pages 5-8
Steve Smith retires
Chief Executive Officer Smith retires after
45 years of service at Hoosier Energy.
Q&A on Pages 3-4
41
NEWS BRIEFLY
COMMITMENT TO COMMUNITY
YEARS IN PRINT
The number of years EnergyLines has been in
print for member-cooperatives and employees.
EnergyLines
design refresh
HE photo Since 1978, EnergyLines has delivered
Nonprofits honored during reception information to member-cooperative
employees, directors and Hoosier Energy
Hoosier Energy is proud to be a part of the Bloomington community. As employees. This month, EnergyLines is
part of our commitment to community, Hoosier Energy provides the use of
unveiling a reinvigorated look. The goal
the board room for local events. On Dec. 6, The Community Foundation of
is to increase the accessibility for you,
Bloomington and Monroe County (CFBMC) held its grant award reception at
the generation and transmission cooperative. At the award reception, $326,700 our readers, while reducing costs – fitting
was distributed to nonprofit organizations as part of the CFBMC’s Community well with our member focus and cost-
Impact Funding Initiative. The CFBMC was created by those who share a management initiatives.
passion for Monroe County and a vision for its future. Beginning with this issue, EnergyLines
has a smaller size that serves two
ENERGY IN TRANSITION purposes. This helps promote shorter
articles that will aid in the scanning of
Digitalization to transform the power sector content. The smaller size scales better on
The ingenuity blog, published by Siemens, tablet devices – improving both print and
digital experiences.
has a post discussing digitalization within the
ONLINEEXTRA
power sector. The post, titled “Digitalization You will notice additional content
of the Utility: Motivations and Impacts,” >> Visit the blog. To find
including a page devoted to what our
incorporates various motives for digitalization this article search for
Claire Curry. members are doing simply called “Our
affecting generators, transmission and
distribution operators, and utilities. members.”
https://new.siemens.com/
The post and associated white paper ingenuity/en/conversations. Another new section is called “Did you
explain how digital technologies will affect html know,” where you will find links to energy
business models, investments and revenues in industry news and resources.
the energy value chain. What hasn’t changed is our focus on
communicating what Hoosier Energy
COMMISSION APPOINTMENT is doing to provide safe, reliable and
McNamee to join federal energy commission
cost-effective power and services to our
members. EL
The U.S. Senate confirmed Bernard McNamee to sit on the Federal
Energy and Regulatory Commission (FERC). The 50-49 party-line vote in
EL
December brings McNamee to the five-member commission that regulates
the transmission of wholesale electricity and natural gas. Those serving on the FIND US ONLINE
commission are political appointees by the President and are confirmed by the
To subscribe or to read back
Senate. The Republican Party now holds a 3-2 majority at FERC.
issues, visit HoosierEnergy.com/
Previously, McNamee led the Department of Energy’s Office of Policy.
news/energylines
1 EnergyLines | January 2019
ENERGYLINES
HOOSIER ENERGY LEADERSHIP
Tom Van Paris returns
ON THE COVER
to Hoosier Energy
The year has been a Renewed focus on member service and engagement
time of transition for
our cooperative and After spending three years as Chief Executive Officer at
industry. Indiana Electric Cooperatives (IEC), Tom Van Paris has returned
to Hoosier Energy as Executive Vice President. Van Paris said he
is excited by the opportunity he sees to make a significant impact
within the organization, both for employees and for Hoosier
Energy’s 18 member systems.
SEND COMMENTS TO One of the key items Van Paris will focus on in his new role is
EnergyLines Editor to serve our member systems in the most responsive way from a
Hoosier Energy customer service standpoint.
P.O. Box 908 “My priority as part of the member engagement division is
Bloomington, IN 47402
to provide support to the members in a manner and delivery to
which they expect,” said Van Paris. “We will make sure that the
ENERGYLINES EDITORIAL STAFF
products and services we provide to our members bring great
Eric Neely Chris Johnson
Communications Coordinator
value to them,” he added.
Video Producer
e-mail: eneely@hepn.com email: cjohnson@hepn.com Another top priority for Van Paris is to make sure that Hoosier
Energy’s resource planning and overall portfolio mix meet the
Crystal Rogers Ben Turner
needs of our 18 member systems. The industry is going to face
Communications Coordinator Video Producer
email: crogers@hepn.com email: bturner@hepn.com some significant changes in how end-consumers use electricity he
said, including where they get energy, how they get it and how it
Heather Hughet Trina Pardue is delivered.
Communications Coordinator Communications Coordinator
email: hhughet@hepn.com e-mail: trina@hepn.com “I think the challenge for Hoosier Energy and members is to
figure out how to stay out in front of those changes,” said Van Paris.
In addition to Van Paris’ increased focus on member
engagement and resource planning, he wants to enable Hoosier
Energy employees within his division to do the best possible job
This institution is an equal opportunity provider and employer.
they can.
Van Paris interacted with all 38 Indiana electric co-ops during
The following stock images were used in this issue his time at IEC and found they all have more in common than
of EnergyLines. they think.
“The concerns, the issues, the challenges they face are actually
©iStockphoto.com/Photohamster
more common than they believe,” said Van Paris. With this in mind,
he believes Hoosier Energy can make a significant impact with the
member systems as they work together to meet our common goal
©GettyImages.com/undefined
of providing affordable and reliable electricity to consumers. EL
© Copyright 2019 Hoosier Energy
FUN FACT
Van Paris negotiated the naming rights for
Cinergy Field, formerly Riverfront Stadium,
in Cincinnati, where the Bengals and Reds
played football and baseball.
2 EnergyLines | January 2019
enormously difficult issues specific to Hoosier Energy.
CLARITY
Over the years, I think we have done well in managing the
risks, challenges and opportunities of Merom in a manner
that has brought tremendous value to members.
What is a challenge you see electric utilities
s
OF PURPOSE
facing in the future?
There are many, but a prominent one I see is in the
way consumers will interact with utilities through a
technology-driven and highly-integrated grid. Technology
Steve Smith led the generation and transmission is rapidly bringing a new world of opportunities for
cooperative to be a small company that thinks big. consumers to produce and manage their energy use. The
traditional utility planning model is being disrupted and
there is much more to come.
Chief Executive Officer Steve Smith retired from Hoosier Who is a leader you admire?
s
Energy on Jan. 15 after 42 years of service. He was named I have always been captivated by the stories of cooperative
CEO in 1994 after serving 19 years in senior management founders. Fortunately, I had the opportunity early in my
career to work directly with a few of them. Don Davis,
positions. EnergyLines interviewed Smith about his lengthy
who remains the longest serving Hoosier Energy Board
career in the energy industry. Chairman, was an original incorporator of both his local
co-op and Hoosier Energy. He had great stories about
What kept you at Hoosier Energy?
s
going out to get people signed up to be members of
I really like the co-op business model and its purpose-driven, distribution co-ops in the 1930s. He is an example of a co-op
member-focused nature. New opportunities continued to present leader who was tenacious and undeterred by the daunting
themselves for me to be involved and grow with the company. challenges during the formation of distribution co-ops and
The work was always new, interesting, diverse and rewarding. I then power supply co-ops. What I saw in him and others
continued to feel I was contributing and making a difference, so was intense determination and readiness to tackle big
I never had a reason to make a career change. challenges forged from that experience.
How do you view the co-op business model in relation What is the most interesting place the job has
s
s
to the future? taken you?
The co-op business model will thrive in the future. What’s As co-ops, we have had a remarkable ability to positively
not relevant about a model built on member-consumer affect public policy outcomes in the best interest of
engagement given the direction our industry is heading? It is a members. The place I have visited most frequently is
competitive advantage. Washington, DC, and it always remains interesting.
Whenever I had a break from business, I especially
What are you most proud of during your time as CEO? enjoyed a run on the Capital Mall past the great historical
s
I am especially proud of the workforce. The ability and monuments.
willingness of Hoosier Energy employees to step up to new
challenges has been outstanding. Retirement provides time for new opportunities.
s
What might you consider doing beyond the co-op
You have played a significant role in the development world?
s
of the Merom Generating Station. What was that like? My wife and I are especially eager to spend more time
When I joined Hoosier Energy in 1977, the decision was with our expanding family. There are a lot of places in the
already made to build Merom. It was a huge commitment for a U.S. and overseas that I would like to experience. And
company our size then – the same is true today. It was a period I’m looking forward to not passing on so many bike rides
of upheaval throughout the industry and Merom brought on that I wish I had time for. I’ll take a little time to mull
3 EnergyLines | January 2019
HE photos
over business opportunities. During my college years I
worked construction and really enjoyed it. My son is now a
construction manager so we sometimes talk about what a
joint venture might look like. I tell him I would be glad to be Steve Smith through the years
the guy who drives the pick-up truck around! CLOCKWISE FROM TOP:
Steve Smith took a moment for a photo as he
s
What else would you like to say to the readers settled into his new headquarters office.
s
of EnergyLines? Smith aids in an employee’s recognition for
s
I want to thank everyone for making Hoosier Energy a service.
special place to work. I will deeply miss the wonderful Early in his career, Smith makes a presentation
s
people I have had the privilege to work with. I think the using an overhead projector.
member systems and Hoosier Energy have a bright future
and I wish everyone the very best. EL
4 EnergyLines | January 2019
COVER STORY
Hoosier
Energy
completes
year of
transitions
The year 2018 was
Year in
a time of transition for
review.
our cooperative and our
industry. We experienced
leadership changes at member-
cooperatives and at Hoosier Energy.
We also saw transitions in technology
and a heightened need to protect our
resources. Opportunities are evolving
rapidly and Hoosier Energy is working
to leverage those opportunities to
benefit our members.
Hoosier Energy’s workforce has
managed costs by securing tens of
millions of dollars in annual savings and
operating efficiencies, and the co-op
remains focused on adding value for
members in an increasingly complex
business environment.
We have fewer employees today
than at any time in the past 15 years
and manage more transmission and
generation assets than ever before,
while continuing to provide extensive
services for members.
Our commitment to providing
reliable service at competitive rates
remains unchanged.
The following 2018 accomplishments
reflect the dedication of Hoosier Energy
employees who work every day to meet
the needs of member cooperatives.
5 EnergyLines | January 2019
Year in
review.
Cyber security efforts
help thwart attacks
The cyber security team, led
by Senior Manager, Cybersecurity
and Network Operations Richie
Field, thwarted a wide range of
cyber attacks throughout 2018. This
was accomplished through threat
intelligence. Part of this process is
collecting information and updates Track-based bucket trucks improve access for
from sources including the E-ISAC,
local DHS fusion center and contacts power delivery crews, help improve reliability
with the FBI Cyber Squad. The power delivery team determined that in water-soaked environments,
These resources, along with replacing a bucket truck with one on tracks, similar to a tank, gives them the
systems in place at the G&T, are ability to drive through wet and muddy terrain with almost no visible property
helping the team respond to more damage.
than 100,000 malicious attempts to Bucket trucks equipped with standard tires often get stuck in mud. A bucket
attack Hoosier Energy systems and truck loaded with equipment can weigh nearly 60,000 pounds.
SCADA networks every day. In return, Tracked vehicles have a much larger area on the ground to distribute weight.
core network systems maintained 100 They don’t sink in mud.
percent reliability throughout the year. The track vehicles were used last year for a line upgrade to the Abydel
substation in Orange County. The tracks enabled the crew to complete the
project without using a contractor to move equipment around the job site.
Safety recognition Without the tracked vehicles, the contractor would have been needed each day
program aids co-ops of a multi-month project, at a minimum of $250 per hour.
Hoosier Energy developed a
safety recognition program and
assisted with the implementation
Economic Development and key account projects
of the Safe By Choice program Economic Development and key account efforts remained strong throughout
for 13 member systems. A new 2018. The economic development team assisted member cooperatives in
feature that has helped this program locating 55 new or expanded business facilities totaling $730 million in
be successful offers member investments.
systems the ability to manage their This growth is projected to add 2,515 jobs in central and southern Indiana
employees’ user accounts and assign – adding 38 MW of new load for members. To attract new businesses or
training to employees. This new expansions, Hoosier Energy team members provide tariff and rate analysis as
opportunity also allows member well as billing support.
systems to utilize the many training Key account team members provided professional development opportunities
offerings housed within Hoosier for 50 economic development officials and sponsored events for 150 commercial
Energy’s Cooperative Academy for and industrial (C&I) consumers. Training continued throughout the year
continued education. through six seminars assisting more than 190 C&I professionals.
6 EnergyLines | January 2019
Year in
review.
Enhancements made to Donna Walker named President and Chief
member service projects Executive Officer as Steve Smith retires
Recent member service Following a national search, Hoosier Energy announced
enhancements provided by Human Donna Walker as the next President and Chief Executive Officer
Resources include recruiting of Hoosier Energy effective Nov. 13 2018. Walker’s
assistance for more than 50 She was an Indianapolis Business Journal CFO of the year career
employees – including four Chief nominee in 2017 and is a graduate of the elite Richard G. Lugar
path
Walker joined
Executive Officers – across 11 Excellence in Public Service Series. Walker is a lifelong resident
the co-op in
member co-ops. The assistance of Indiana. 1995. She
ranged from posting the positions The Board of Directors offers its most sincere appreciation recently held
on Hoosier Energy’s job board to to retiring CEO Steve Smith for setting the vision for Hoosier the office of
full recruiting and talent selection Energy throughout the past 25 years. “The Board thanks Steve Executive
for his dedication and immeasurable contributions in generating Vice
facilitation.
President
Targeted Selection is a behavioral member value,” said Darin Duncan, Chairman of Hoosier
and Chief
interviewing system that focuses on Energy Board of Directors. “We wish all the best for him and his Financial
competencies, provides a consistent family in his retirement.” Officer.
interview experience, emphasizes
behavior and levels the playing field
for candidates.
These services help member
cooperatives provide nationwide
exposure by leveraging Hoosier
Energy’s reach through job boards.
Merom heat rate leads
to significant savings
At the end of 2018, Merom
Generating Station was able to claim Transformer to help improve reliability
a $1.5 million victory. The crew at
the generating station looked at HE photo
several operational variables within
their control and were able to Back-up transformer aids in reliability for members
make overall improvements to the To improve reliability for member co-ops, Hoosier Energy has a back-up
processes. transformer on location at the Merom Generating Station. Early in September,
These improvements included a spare transformer was delivered to the station by rail. The 283,475 pound
closely monitoring and utilizing transformer was transported to a concrete pad adjacent to the primary substation
software that allowed operators at the plant.
to better understand, in real time, Transformers are designed to boost electricity voltage for efficient long-
the financial impacts associated distance travel while reducing voltages for delivery to end-consumers. This
with their operating decisions and variation in voltage control is called “stepping up” or “stepping down” voltage
improve the efficiency of the station. and is critical to electrical reliability.
7 EnergyLines | January 2019
Year in
review.
Did you
My Solar program know?
brings cooperative solar
initiative to light
‘ALONG THOSE LINES’
Hoosier Energy and member systems NRECA PODCAST
developed the My Solar program to give
consumer-members direct access to solar Along Those Lines,
energy. This program allows consumer- a new podcast from
members to use solar energy within their NRECA, shows the
home or business without installing or
great work and some
maintaining a private solar structure.
Participants are able to use output from a one-
of the challenges that
megawatt solar array serving their area. said Hoosier Energy Project Developer for electric co-ops face
The My Solar program offers members the Renewable Energy Chad Jenkins. across the country. The
opportunity to reserve up to 12 solar panels. The renewable energy and December podcast,
The size of the panels vary among the 10 solar communications teams at Hoosier Energy “Waging a Comeback
sites, but average ~330 Watts. In one year, one work with member co-ops to provide
for Small-Town Amer-
panel will produce ~450 – 500 kWh. marketing materials such as yard signs,
ica,” discusses “place
Since June, six co-ops have enrolled in the brochures, banners, window clings, and
My Solar program with 125 panels reserved printed and digital ads. making” or revitalizing
by end-consumers. Each co-op also receives a customized rural communities.
“We anticipate the majority of members website, video, radio ad and on-hold
will offer the My Solar program to their messaging to assist with marketing the WHERE TO FIND IT:
member-consumers by the end of 2019,” program to their members. electric.coop
DSM programs help Stations’ VPP status
reduce energy use renewed for five years
In the 10th year of the demand side In 2018, the Worthington and
management (DSM) program, Hoosier Lawrence Generating Stations
Energy members are making progress were awarded a five-year Volunteer
in reducing peak demand as well as Protection Programs (VPP)
improving end-use energy efficiency. certification from the Occupational
Programs in place are helping Safety and Health Administration ALSO FOUND AT
consumers save 10,700 MWh annually. (OSHA). The generating stations ELECTRIC.COOP
When energy is at its peak in the summer achieved their first VPP status in 2015.
and winter, DSM efforts are reducing high This certification is a grand NRECA seeks 80
demand by 1-megawatt in the summer achievement for the facilities. Only percent reduction in
and 2-megawatts in the winter. two percent receive a five-year
insurance premiums
These savings are driven by a certification.
on co-op retirement
variety of programs. Residential heating Facilities are inspected by OSHA for
and cooling rebates for the year are all safety elements and environmental plans.
valued at $899,000. health aspects.
OUR MEMBERS
Social session
When the power goes out, electric
cooperative employees work to
get the power back on. Sending
power restoration messages to
consumers is aided by social
media. Johnson County REMC
and Decatur County REMC
recently shared their efforts with
member-consumers on Facebook.
HE photo
Training refreshes rebate knowledge
Blake Kleaving, Energy Efficiency Program Coordinator at Hoosier Energy, provided
energy efficiency and HVAC contractor rebate training for the employees of Daviess-
Martin County REMC. The session provided insight on how to determine if a member-
consumer is qualified. Once qualification is determined, concerns about a member-
consumer not meeting rebate requirements are reduced and relationships with HVAC/
electrical vendors are improved. The training compared the difference in rebates when
member-consumers are looking to reduce their energy consumption as they upgrade
a heat pump or replace resistance heat. This helps member cooperatives maximize
rebate dollars as they are applied to the correct energy-efficient measure.
INFOEXTRA >> Interested in getting your staff refreshed on rebates?
Contact DSM Analyst Susie Smith at Susie.smith@hepn.com.
(FACEBOOK)
JOHNSON COUNTY REMC
Patronage part of cooperative difference
Donna Walker, to members. Hoosier Energy’s policy is
Co-op
President and CEO of to retain margins for 25 years and then
value.
Hoosier Energy, has retire them.
begun her annual visits Walker will continue delivering the
to the board meetings of our member patronage capital to the co-ops through
cooperatives, presenting eligible February.
cooperatives with their patronage Each co-op has the option to
capital. Patronage capital – also called re-invest its patronage capital within
capital credits – refers to annual its cooperative or to pass along the
cooperative revenue that remains after patronage to eligible consumer
all expenses are paid. The margins are members.
retained to cover operating costs and Hoosier Energy has been returning
may, after a period of time, be returned patronage capital since 2000. (FACEBOOK)
DECATUR COUNTY REMC
9 EnergyLines | January 2019WORKING SAFELY
CREWS REPAIR SUBSTATIONS WITH HELP FROM MOBILE EQUIPMENT
Put substation components on the back of a trailer and you have a mobile substation. This
equipment was put to use by Hoosier Energy crews outside of Hayden, Ind. This equipment
allows crews to safely work on a de-energized substation.
12KV ARRESTOR
These arrestors are in place to
protect this equipment from
overvoltages such as lightning.
69KV TRANSFORMER
The transformer is what steps
the power down from 69KV
to the voltage needed for
HI-SIDE MOD distribution lines at12KV.
This motor-operated
disconnect can switch between
69KV and 34.5KV systems.
POTENTIAL TRANSFORMER
This monitors the voltage
coming out of the transformer
as it is sent onto the grid.
12KV SWITCHES
These are used to connect and
disconnect the flow of power.
GROUNDS
These cables connect to
the grounding system at the
substation.
10 EnergyLines | September 2018Be safe, share the road this winter
Winter weather creates driving challenges. If you are traveling when road conditions are poor,
be sure to follow these tips when around snow plows and emergency vehicles.
GIVE ‘ EM SPACE ROAD POSITION BACK IT UP VISIBILITY
Don’t crowd snow plows The road behind an Don’t tail closely behind Expect changes in
on the road, let them do active snow plow snow plows. This will visibility if traveling near
their job. provides a safer road help keep road salt from snow plows as they can
surface to drive on. being sprayed onto your create snow clouds.
vehicle.You can also read
